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Shaky RTC lets out land to fuel profit
Posted by Srini Uppala | December 13, 2007 | 227 views
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Loading ...Andhra Pradesh State Road Transport Corporation will lease out its lands at Shamshabad, Ranigunj and Bus Bhavan for construction of star hotels, shopping malls and commercial establishments. It will also construct metropolitan transfer centres in these locations to run buses. Last year, RTC identified five acres at Shamshabad, seven acres at Ranigunj and 11 acres near Bus Bhavan for commercial utilisation. However, it was unable to move further on this.
Recently, it entered into an agreement with the Urban Mass Transit Company Limited of the Centre and the Infrastructure Leasing and Financial Services Limited for commercial utilisation of these properties. “As per the agreement, RTC and UMTC will conceptualise the projects and award them under public private partnership,” said RTC managing director, Mr V. Dinesh Reddy.
RTC is expected to lease out its lands only for 33 years and extend the period after that. It will get licensing fee and monthly rents. “The agreement will also enable RTC to retain its properties,” said Mr Dinesh Reddy. Officials feel that there will be much demand for the Shamshabad plot because of its proximity to the new international airport. The RTC management is very keen on utilisation of lands in other districts also in a phased manner to reduce its financial burden. It has to clear accumulated debts of around Rs 1,100 crore though it earned Rs.123 crore profits in the first half of the current financial year.
SOURCES:
Deccan Chronicle
Topics: Hospitality, Govt In Action, Infrastructure |
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